This summer, the Department of Labor (“DOL”) released proposed amendments to the “white collar” exemption standards under the federal Fair Labor Standards Act (“FLSA”). The white collar exemptions from the FLSA overtime requirements include the executive, administrative and professional classifications. A 60-day public comment period ended on September 4, 2015 and now the DOL will review and evaluate the public comments submitted and issue final amendments, which may differ from the proposed amendments. It is unknown exactly when the final amendments will be issued, however, they are expected to take effect some time in 2016.

Although the California sick leave law (Healthy Workplaces, Healthy Families Act of 2014) took effect in July of this year, employers are already anxious for clarification on its practical application. In mid-July, certain issues were clarified through urgency legislation amendments (addressed in our previous newsletter). On August 7, in an opinion letter, the Labor Commissioner issued an employee-friendly interpretation of the legislation as it applied to employees who work 10-hour shifts.

The August 5th Buy Sell Report includes an article by Robert D. Daniels and Gus N. Paras of The Scali Law Firm, providing an overview of how title provisions are handled in real estate purchase agreements, or “REPAs,” with a focus on the seller’s warranty of title, the buyer’s approval of title, and title insurance.

Don't miss the Legal Minute article on page 22 of this months West Coast Dealer Magazine, published for the Independent Automobile Dealers Association of California.

Today, the California Supreme Court has issued its long-awaited ruling in the case of Sanchez v. Valencia Holding Company LLC with respect to the arbitration clause in the Form 553 CA ARB retail installment sale contract.

The Federal Trade Commission (FTC) has again targeted automobile dealers for allegedly deceptive advertising. If you are familiar with the CNCDA’s 2015 Advertising Law Manual, authored by The Scali Law Firm, you already know that the FTC and other regulators are targeting dealers nationwide over advertising violations and your best bet is compliant advertising.

As anticipated, the California legislature has attempted to clean-up some loose ends left by the original paid sick leave law (AB 1522) which took effect on July 1^st. Although these changes may ultimately create some additional questions, it does provide clarity in some areas where employers were left guessing. Moreover, these changes provide some additional options and flexibility for certain elements of compliant policies.

This year has been busy for us. In addition to adding a San Diego presence, we moved our Los Angeles office, though not far.

In April, after retiring from his partnership, Robert D. Daniels joined The Scali Law Firm, Of Counsel, to continue to mentor young associates, assist Mr. Scali in handling the firm’s litigation and F&I compliance programs and advice and counsel.

The Scali Law Firm is pleased to announce that it’s own Dominique Nasr was selected by Super Lawyers Magazine as a 2015 Rising Star in the legal field of Employment and Labor.

Phishing techniques have become much more sophisticated, with hackers doing reconnaissance on their victims, targeting those in your organization that have access to confidential financial information or non-public, private information of customers. They cull data from the Internet and social media sites, such as LinkedIn, for tidbits of personal and professional information that can be used in making phishing emails look legitimate. They know where their victims work, whom they do business with, the names of their bosses, and email addresses. The tactic is called spear-phishing.  How do you protect against it?

A federal district court held that auto dealerships are not required to install hand controls in vehicles they offer for sale in their inventory to comply with the Americans with Disabilities Act. This was the most recent in a series of victories of this type for auto dealers in California faced with these types of lawsuits. But this story isn’t over.  And we strongly urge you to discuss an appropriate course of action for your dealership with your automotive attorneys, because this issue will not be fully resolved for some time to come.

A sales manager is hauled away from the dealership in handcuffs with Department of Justice officials standing by. At his arraignment he is charged with several counts of fraud and grand theft auto. The local news media is all over this story and highlights the dealership in local coverage. Customers start complaining. Employees quit. Good times. What should you do if your employee is arrested/charged, but not convicted, of a serious crime, endangering your business' reputation?

The California Supreme Court says a prevailing employer in a discrimination, harassment or retaliation case under the Fair Employment and Housing Act cannot recover mere “costs” without a finding that the employee’s claim was frivolous.

Employers have increasingly relied on arbitration agreements with employees for disputes arising out of the employment relationship, and class action waivers contained in those agreements have provided a means to avoid class or representative actions for those disputes as well. In 2014, the California Supreme Court affirmed the enforceability of class/representative action waivers in arbitration agreements generally, but carved out an exception for actions brought under California’s Private Attorneys General Act (“PAGA”). However, a number of federal courts have issued contrary rulings, and the Ninth Circuit Court of Appeal just heard arguments on this same issue in a trio of consolidated wage-related cases.

The Scali Law Firm is pleased to announce that it has partnered with the California New Car Dealers Association to draft its 2015 Advertising Manual for dealers. With its first new edition in over 8 years, the CNCDA’s Advertising Manual has been given a complete overhaul. This new edition contains easy to read rule sets, examples, best practice notes and FAQs.

This Alert is generated to calm any panic caused by reports from other sources that service advisors are no longer exempt from overtime pay requirements under federal law as a result of the Ninth Circuit’s holding in Navarro v. Encino Motorcars, LLC. At least for now, for California-compliant dealerships, Navarro should have no effect.

The Scali Law Firm is pleased to announce its expansion into San Diego and the addition of Jennifer Woo Burns, as attorney of counsel, and Paul Neumann, as Senior HR and Operations Specialist. Together they bring extensive experience in human resources and employment law and will join The Scali Law Firm in San Diego.

Throughout 2014 we have written about the new laws that will affect many California dealerships. As the New Year is here, we wanted to provide you a summary of compliance issues you may want to address in light of the new 2015 laws that will have an impact on your day-to-day operations. Some of these laws went into effect as early as January 1. Some significant liability awaits you if you do not address these compliance issues now. The good news is that if you get ahead of it, neither your compliance budget, nor your litigation budget should be severely affected.

On Tuesday, the Fourth District Court of Appeal in California dealt overreaching consumer attorneys a devastating blow in Raceway Ford Cases. While this case has wide-ranging application to consumer class actions often filed against dealers, dealers should be cautioned not to change their practices in light of this case. But its multiple holdings are a much needed shot in the arm to auto dealers who have been assaulted by class actions in recent years.